20 minutes with Dr Khallid Khalafalla, ICIEC
In today’s episode, Dr. Khalid Khalafalla, CEO of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Acting CEO of the Islamic Corporation for the Development of the Private Sector (ICD), shares his strategic vision for advancing sustainable economic growth across Organisation of Islamic Cooperation (OIC) member countries.
Background and Mission
Dr. Khalid Khalafalla leads two critical institutions within the IsDB Group: ICIEC, established in 1994 to provide investment and export credit insurance, and ICD, the private sector arm of the Group. Together, they play a vital role in supporting the development priorities of OIC member states, which include economic diversification beyond commodities, poverty reduction, job creation, and resilience to climate and economic shocks.
As CEO, Dr. Khalafalla oversees day-to-day operations, builds strategic partnerships, and aligns institutional mandates with the broader mission of the IsDB: to foster sustainable, inclusive development across its 57 member countries.
A Renewed Strategic Direction
Under Dr. Khalafalla’s leadership, ICIEC and ICD are sharpening focus on three interconnected priorities:
- Economic Diversification: Helping member countries transition from commodity- and resource-driven economies to more diversified and resilient growth models.
- Private Sector Empowerment: Mobilising finance for SMEs, women entrepreneurs, and youth, particularly in fragile and post-conflict contexts where access to affordable finance is limited.
- Sustainable Development: Embedding poverty reduction, employment creation, and climate resilience into all operations, guided by Islamic finance principles of fairness, responsibility, and social impact.
Complementary Roles within the IsDB Group
ICIEC and ICD were created to serve different but complementary mandates. ICIEC supports credit enhancement and risk mitigation through export credit and investment insurance, while ICD directly finances private sector initiatives and strengthens local financial institutions. Together, they provide a full spectrum of tools—insurance, guarantees, and direct financing—that enable both governments and private businesses to access capital.
Successful collaborations include joint work on energy projects in Senegal, Côte d’Ivoire, and Turkey’s healthcare sector, demonstrating how different IsDB arms combine to deliver development impact.
Islamic Finance and ESG Alignment
Dr. Khalafalla stresses that Islamic finance is inherently aligned with ESG principles. At its core, it promotes:
- Responsible Conduct and Real Economy Linkages
- Financial Justice and Economic Empowerment
- Social Responsibility and Environmental Stewardship
Beyond profitability, Islamic finance prioritises the well-being of people and the planet. ICIEC and ICD also advance awareness by publishing research and disseminating knowledge on the value of Islamic finance in sustainable development.
Blended Finance and Unlocking Capital
ICD has been pioneering blended finance approaches to mobilise private capital in high-risk environments. A flagship initiative is the BRAVE programme in Yemen, which combined $6 million in donor grants with $9 million in ICD financing to support SMEs—particularly women- and youth-led enterprises—during conflict. The programme has since expanded to Nigeria and Burkina Faso.
Through initiatives like BRAVE and participation in global blended finance working groups, ICD helps make capital more affordable and accessible to SMEs, fragile states, and underserved communities. Importantly, ICD channels funds through local banks to ensure reach and accountability.
Innovations and Future Outlook
Dr. Khalafalla points to innovations such as sovereign default insurance policies, developed in partnership with institutions like the World Bank’s MIGA, which provide coverage against government defaults and enhance credit ratings. These instruments are enabling large-scale infrastructure projects in healthcare, transport, and energy.
Looking ahead, ICIEC and ICD remain committed to developing new tools to meet the needs of member countries, with a focus on credit enhancement, blended finance, and measurable development impact—particularly in supporting women and youth employment.
Islamic Development Bank (IsDB)
Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)
The Islamic Corporation for the Development of the Private Sector (ICD)
Organisation of Islamic Cooperation (OIC)
